Water rates revised

The Harrisburg Town Council backtracked this month to rescind recently approved water rates that more than doubled bills for some residents.

When the council approved the fiscal 2011 budget in June, they also approved changes to the water rate structure.

The new structure charged residents a fixed rate based on the cost of the capacity of the water lines that connect to their taps. The previous rate had been a variable rate based on consumption.

The altered rate structure came on top of a new stormwater fee intended to help pay for drainage issues around town. That fee - $4.64 per month for single-family homes and $4.64 per equivalent residential unit on non-residential property - went into effect July 1.

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But after town hall received more than 200 calls from residents complaining about the higher bills they received in August, the town council took a second look at the rates and decided to scrap the changes and return to the former water rates but with an 11 percent increase.

Perry Rivers of Harrisburg, addressing the council at its regular Sept. 13 meeting, said his water bill jumped from $9.35 to $18.36 after initial changes to the rate.

"Don't vote for something you don't know what it is," he said.

Town Administrator Michele Reapsmith said the water rates were changed from consumption-based to capacity-based because the town must pay for capacity, a cost much higher than consumption.

The town pays about $1.3 million every year to purchase water from Concord.

Before the changes, a resident who used 2,000 gallons of water and 2,000 gallons of sewer a month would pay $16.81. But the town's monthly cost, which includes treatment and transportation of the water through the lines, is $33.90.

To make up the difference, the town was dipping into its fund balance.

Reapsmith described the old rate as "critically inadequate" and said the fund balance was too low.

"We can't afford to subsidize it anymore," she said.

Residents within town limits using less than 2,000 gallons of water saw their bills increase dramatically because they paid the minimum cost of $16.81 - $9.35 for water and $7.46 for sewer. Residents using more than 2,000 gallons were billed on a tiered-rate structure that charged them incrementally more if they used more than 2,000, 6,000 or 9,000 gallons of water.

Although the changes increased bills for some, residents who used more than 6,000 gallons of water saw a reduction in their bills.

"We all thought things were going to be good," said Councilman Jeff Phillips. "Obviously, it's not."

Councilman Bob Scaggs said it was wrong to increase water bills for residents using low amounts of water, many of whom are elderly people whose only income comes from Social Security, while giving a break to residents using several thousand gallons of water.

"You can't walk in and double someone's rate just because the government messed up," he said.

Scaggs said he knew of a Harrisburg woman who was charged $16.81 bill for using 1,950 gallons of water before the changes. After the changes, she received a $43 bill for using 2,150 gallons, he said.